Kevin Johnson: Yeah. So Mig, we’re expecting positive volume through each quarter and low single-digit price. The price is pretty consistent year-over-year by each of the quarters, with volume positive in Q1, found improvement as we progress through the year. And obviously, Mig, as you’ve seen from us in the past, we’re going to continue to be pretty vigilant on price. We are going to have console price all that in the first quarter. We’ll continue to watch inflation and move as required. In terms of the segments, our expectation is that both — we expect both segments to be positive on volumes with stronger price in the Americas segment versus EMEA and APAC.
Mig Dobre: Can I ask why stronger price in Americas? What’s the factor driving that?
Kevin Johnson: So we do have a portion of the business that’s in South America. So there is an element of some additional price there. And our team continues coming out of the PLS activities that we did last year, continues in North America to maximize value, particularly on the new products, Mig, that we’re bringing to the market, we see an opportunity to continue to drive price to a better place.
Mig Dobre: Excellent. Thank you.
Operator: Your next question comes from the line of David Raso from Evercore ISI. Please go ahead.
David Raso: Hi. Thank you. Picking up on the price commentary, I thought the price in the fourth quarter was a pleasant surprise in the Americas. So can you give us a sense of is there any incremental price you took in January or is the price you expect in Americas in 2024 simply whatever you have as carryover? And then if you can — add bit also on the negative pricing in international, just so we kind of square up at where is that coming from? Is that largely a down Europe, but maybe some positive price in Middle East and India.
Shyam Kambeyanda: Yeah. So thanks, David. Great — good to hear your voice, as always. So a couple of things. We did lap in Q4 some America pricing. But that being said, as Kevin mentioned, we’ve gone out with some additional pricing in the first quarter in both of our regions. When we looked at Europe, we did see some — we’ve talked about this before. We see steel prices moving very differently in different regions. And we did see some deflationary steel prices, especially in Europe that sort of allowed us to do something different in our pricing strategies in Europe for the fourth quarter, but we have done some additional pricing activities in the first quarter. But that being said, what we were really happy about in Europe was the expansion in margins about 200 basis points.
And if you remember 1 thing that we have said is that ESAB is focused on a net price number. So when we see deflation and what we do with the marketplace, we want to be net positive on the price line as we move forward, and that was very evident in how we performed in the fourth quarter. I hope that answers the question.
David Raso: That’s fair. And not to drill down to the first quarter, but I heard positive price, positive volume I’m just making sure, I mean, obviously, the currency is negative one for the year. It must be more front-end loaded, but just trying to square that up. Basically, you’re looking for positive price, positive volume, offset by volume for a flattish first quarter. Is that that the quarter?
Shyam Kambeyanda: Yeah. That’s right. That’s right. And I think the other piece that we — the other piece we mentioned is that there’s a bit of noise in the first quarter with weather, with where the holidays are landing. So you’ve got a days impact as well that comes at you for the first quarter, David.
David Raso: Okay. And lastly, you referenced an M&A pipeline, I’m not sure the word you used robust or full or whatever it may be. But can you explain what you meant by that? And maybe give us some framework on how you’re thinking about M&A this year?
Shyam Kambeyanda: Yeah. Very similar to our strategy in the past, bolt-on acquisitions, keeping our debt level in that 2% range, and driving businesses and acquiring businesses that are accretive, improve our geographic strategic positioning and filling out product line gaps. We’ve got a few that have a chance to get over the goal line. And so as a result, we’re feeling quite good that none of our guidance does not include any acquisitions that could happen and that would be a pleasant upside to anything that we’ve guided to today.
David Raso: And I guess, now its — was also hinting at size a little bit. I mean is this Ohio Medical size or is this more therapy size? I’m just trying to get a sense of magnitude.
Shyam Kambeyanda: Yeah, what I’d say one in one kind of a scenario is that there’s probably a couple in there size of therapy and a couple in there the size of Ohio.
David Raso: Helpful. All right. Thank you so much.
Operator: Your next question comes from the line of Nathan Jones from Stifel. Please go ahead.
Nathan Jones: Good morning, everyone.
Shyam Kambeyanda: Hi, Nathan.
Nathan Jones: A couple of questions on some of the investments you’re making in 2024. I mean, you mentioned $50 million of additional incremental investment to support growth and Kevin mentioned a couple of CapEx expenditures to support growth. Maybe you could just give us some more color on what those are? And how they will drive growth over the next few years?
Shyam Kambeyanda: Yes. So let me take the question on marketing and I’ll hand it over to Kevin for the capital. So on the marketing side as you know we’ve launched several new products and our intent is to continue to create marketing structures and advertising for these particular products around the globe as we begin to see these products into the marketplace. The other aspect of it is incentive plans for our sales teams as they begin to sell a different mix and encouraging them to learn and be able to sort of competently sell the product line that we have. And last but not least we are looking at augmenting our marketing strategy a bit differently and nothing much to share now but I hope by the third quarter we can share with you how we’ll begin to separate ourselves on that particular piece and really create something special for the long-term at ESAB. And so that’s the dollars that we’re talking about there. Kevin, do you want to give a bit of color on capital?
